The Great Canadian Gaming Corporation is not betting on an expansion of its Nanaimo operation anytime soon.
And that could mean bad luck for taxpayers.
The corporation spent $3 million in interior and exterior upgrades over the last year, but a $50-million expansion plan introduced in 2009 remains on hold.
Howard Blank, company spokesman, said while about 7,500 people visit the downtown casino each week, the casino is still feeling the effects of the recession.
“People are being careful with their dollars and entertainment always seems to be at the bottom of the list,” he said. “There’s no word on what we will be doing for the future in terms of the original proposal.”
Nanaimo’s operation has 380 slot machines and 12 gaming tables and remains important to the corporation, Blank said.
“If it wasn’t, we wouldn’t spend $3 million on the facility,” he said. “If the economics changes, then we will look at proposals.”
The casino’s economics mean millions of lost dollars to the city, which gets 10 per cent of gaming revenues.
Those numbers fell from a high of $3.1 million in 2007 to $2.48 million in 2011.
The city budgeted for $2.7 million in casino revenues last year and is hoping for $2.5 million this year.
Brian Clemens, city director of finance, said the $200,000 shortfall in 2011 is equivalent to a 0.25-per cent increase in property taxes.
“We only have so many sources of revenue and casino revenue has been a supplement to property tax revenue for years,” he said. “To the extent that this revenue has reduced, we either have to start cutting back programs or increase property taxes.”
The city’s portion of casino revenues also went to debt payment on the Vancouver Island Conference Centre, policing costs and social and cultural grants.